Having a bad property management advisor can cost you quite a lot of money and time if you are not careful. Without proper management, the chances of your property sitting on the market for too long is likely. Either this happens, or you end up with a bad tenant simply because you or your advisor is anxious about the days spent on the market. You are also least likely to make any good money with a bad property management advisor by your side. There are quite a number of fund formation processes or ideas you may come across nowadays. Maybe one or two may pop up. But remember, you will need to look for the best fund formation processes in order to manage your real estate investment; one that is appropriate for all your needs.
So, when you run out of luck and end up with a bad property management advisor, you may need to rethink your options. You don’t want to be the property owner who wastes resources. Plus, on top of that, you also have a bad manager as well.
Having the right property management company or advisor can save you a lot of money. So, instead of waiting around, you might want to be on the lookout for these early warning signs. Don’t wait until it is too late to take action.
- Missed deadlines
In the real estate world, there isn’t any room for missed deadlines. In fact, many real estate companies and agents contact their tenants 60 days prior to their leases expiring. This gives you ample time to take the necessary measures if you intend to renew it or not. Upon being notified, you then need to give your feedback at least 45 days before your current contract expires. If, in any case, your property management advisor forgets to answer, your lease legally auto-renews.
So, if you had deadlines you needed to meet, you see how this can complicate things. Say, for example, that you intended to move into your property at a specific time. Your tenant, if not notified in time, has the right to stay in that premises for another 30 days after the lease. You then find that you have to put any plans you had on hold. And this happens merely because your property advisor didn’t get the message in time.
You may let your property advisor get away with missing one or two deadlines. However, when you notice a pattern forming and the deadlines they miss start to snowball, then you need to act fast. Look for another property management advisor that can help you avoid such situations from occurring.
- Unauthorized or inaccurate charges on the owner statement
As the property owner, you must never excuse any unauthorized expenses. It’s true that repairs have to happen. However, when you notice that these repairs cost a little more than the expected amount, you need to start asking questions. Here is where the idea of Fund Formation comes into play the most. For example, if you approve the charges of a $200 repair, but it costs $250, you must also approve that difference as well.
Your property management advisor must get an okay from you for any overage in costs regarding your property, warns Sterling Property Solutions. If this doesn’t happen, then there is a high likelihood that the vendors may do the work at their own expense which can be quite inconveniencing. It is, therefore, essential that the property owner stays on the loop about any overages especially regarding repairs. Plus, any repairs you approve also need to stay within your budget repair limit. If there is anything otherwise, then you ought to get at least a call for that. And if your current property advisor doesn’t do any of this, then it might be time for a change.
- Poor communication
The root of all problems starts from lack of or poor communication. Why do you even need to have a property advisor if he/she is difficult to reach almost all the time? This should ring a bell that it’s probably time you found someone new. You need to have a property advisor that is easy to reach at all times. Look for a property advisor that responds to your calls or emails. If he/she is busy, then they need to get back at least within 24 hours. Don’t take unanswered messages for granted. That’s not acceptable in any profession.
- Untimely owner disbursements
Your property is your source of income. Therefore, you need to have a property management advisor who disperses any rent they collect in a timely fashion. If your property advisor doesn’t immediately deposit the rent they collect from your tenants, then know something isn’t right. Some property companies can take up to 30 days before they disburse the amount to the owners. As the property owner, you must look for a property advisor who focuses on getting you your money quickly. The sooner, the better in this case. So, if you notice any fluctuations in this time-lapse, then this calls for a red flag. Your property owner may be the cause of some other internal problems in your business as well. Take this as an indication to move on.
- Vacancies of more than three weeks
If you have a property that has been on the market for three weeks or more, that is an issue. It gets even worse if you aren’t getting any updates on the current situation of that property. Your property could be vacant for many different reasons. Who knows? Maybe it is overpriced or isn’t getting as much traffic as the other real estate properties. Whatever the issue may be, it is essential that you have a property management advisor that keeps this particular line of communication open. There is no issue to have a piece of property sitting idle when it could make you some good money. This is also a clear indication that you may need to move on to another property management advisor.
Final thoughts
Every business operates to increase its profits and lower costs. It’s all in the Fund Formation process. So, if you realize that your property management advisor is your main hinderance from achieving this goal, then move on to another one that works to produce more positive results.
